Residency Requirements for Weed Businesses Are Probably Unconstitutional, Says Oregon Legislature's Lawyer

Willamette Week:

Oregonians who are paranoid about large, out-of-state marijuana companies dominating the state’s legal weed market now have more reason to worry. State lawmakers are considering a way to keep “Big Marijuana” out by creating residency requirements, such as those in Washington and Colorado. But the top lawyer advising state lawmakers, legislative counsel Dexter A. Johnson, wrote an April 20 legal opinion that concludes prohibiting out-of-state companies and investors from joining Oregon’s recreational pot industry would probably violate the U.S. Constitution. Johnson writes that he would need more information to say whether Oregon could find a "significantly substantial" reason for blocking out-of-state investors from one industry."We note, however," Johnson writes, "that a blanket ban on out-of-state participation is a strong remedy and would need an extremely strong justification… in order to survive a challenge."But Sen. Floyd Prozanski (D-Eugene) says marijuana is a special case because the U.S. Department of Justice has warned states to avoid pot sales across state lines. He wants a four-year residency requirement to help prevent interstate dealing. “We have an obligation,” Prozanzki says. "Ensure we don't have leakage into the underground market."

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